Article 9 - Damage,
Destruction or
Condemnation
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9.1 Repair or Reconstruction. If an Improvement on any Lot is damaged or destroyed by fire or other casualty, the Owner of such Lot shall repair or reconstruct the Improvement in accordance with the original as-built plans and specifications subject to such modifications as may be approved by the Architectural Review Committee or as required by law. If any Common Area Improvement is damaged or destroyed by fire or other casualty, the Association shall repair or reconstruct the Improvement substantially in accordance with the original as-built plans and specifications subject to such modifications as may be approved by the Architectural Review Committee or as required by law. Notwithstanding the foregoing but subject to the provisions of Section 9.3, the Association will not be required to reconstruct or restore the damaged Common Area Improvement if there are not available insurance proceeds and reserves sufficient to pay for at least 85% of the costs of such repairs or reconstruction and three-fourths of the total power of the Association's residing Members and their first lenders vote against such repair or reconstruction.
9.2 Reconstruction Contract. If the Common Area Improvements are to be rebuilt or restored, the Board shall solicit and obtain bids from at least two reputable contractors to repair and reconstruct the Common Area Improvements in accordance with the original plans and specifications, subject to such changes as may be approved by the Architectural Review Committee or required by law and shall award the repair and reconstruction work to the lowest bidder unless the Board in its reasonable judgment elects to select a higher bidder. The Association shall have the authority to enter into a written contract with the contractor or contractors for the repair and reconstruction, and the insurance proceeds held by the Association or insurance trustee shall be disbursed to the contractor according to the terms of the contract. It shall be the obligation of the Association to take all steps necessary to ensure the commencement and completion of authorized rebuilding at the earliest possible date.
9.3 Minor Repair and Reconstruction and Deductibles. The Association shall have the duty to repair and reconstruct Common Area Improvements within the Development without the requirement of consent of the Owners and irrespective of the amount of available insurance proceeds in all cases of partial destruction when the estimated cost of repair or reconstruction does not exceed $20,000, which amount shall be increased 3% per annum on a compounded basis commencing on the anniversary date of the recordation of the Declaration and each anniversary date thereafter. The Association may levy a special assessment for the cost repairing and reconstructing improvements to the extent insurance proceeds are unavailable pursuant to the procedures described in Article 6.
9.4 Completion of Repair or Reconstruction. The repair or reconstruction of any Improvement, including a residence, shall commence no later than 90 days after the date of such damage or destruction and shall be completed no later than 180 days subject to extensions of like periods because of delays that are beyond the control of the party responsible for making the repairs. The party responsible for making the repairs immediately shall take such steps as may be reasonably required to secure any hazardous condition resulting from the damage or destruction and to screen any unsightly views.
9.5 Election Not to Rebuild. If any Common Area Improvement is not repaired or reconstructed in accordance with the foregoing, any Association's obligation to maintain, repair or insure the Improvements shall terminate and all available insurance proceeds will be disbursed to the Association unless Members holding a majority of the total voting power elect to have the proceeds disbursed to the Owners, in which case the proceeds shall be disbursed equally among all the Lots, subject to the rights of the Owners' respective Mortgagees, after first applying the proceeds to the cost of mitigating hazardous conditions on the Property, screening the area from unsightly views, and complying with all the applicable requirements of governmental agencies.
9.6 Condemnation. If any action for condemnation of all or any portion of the Common Area is proposed or threatened by any governmental agency having the right of eminent domain, then, after approval by vote or written consent of Members holding at least 51% of the total voting power of the Association and with the consent of the first Mortgagees as may be required herein, the Common Area or a portion of it may be sold and conveyed to the condemning authority by the Association. In addition, the Association, acting as the attorney-in-fact of all the Owners under an irrevocable power of attorney, which each Owner by accepting a deed or a Lot in the Development grants to the Board, and which shall be coupled with the interest of all other Owners, may abandon any easements that the Owners retain over that portion of the Common Area that is sold. Proceeds of any such sale shall be allocated equally among the Lots and distributed to each Owner and their Mortgagees as their respective interests may appear. If the Common Area or any portion of it is not sold but is instead taken, the award shall be apportioned among the Owners and their respective Mortgagees by the terms of the judgment of condemnation; and it not so apportioned, then the award shall allocated equally among the Lots and distributed to each Owner and their Mortgagees as their respective interests may appear.
Notwithstanding anything herein to the contrary, the Board may elect to retain all or any portion of any condemnation proceeds with the Association's funds in lieu of distribution.
